*From Bloomberg News reporters Jack Sidders, Nicholas Comfort, and Neil Callanan:*
As fears about US commercial real estate roiled German banks this month, their message was clear: don’t worry, the vast majority of our property exposure is domestic.
The result is a slow-motion property crash that threatens to accelerate as property owners such as Rene Benko’s Signa group of companies or landlord Adler Group are forced to sell, burdening smaller and mid-sized lenders that were just hitting their stride after bail-outs in the financial crisis. Some senior officials at the [European Central Bank](https://www.bloomberg.com/quote/2539Z:GR) say the country will inevitably be a special focus as they examine CRE risks at banks across the region.
quick we need taxpayer money to save the banks !!!
Well i certainly hope for a deep correction of house prices. They’re currently unaffordable
3 comments
*From Bloomberg News reporters Jack Sidders, Nicholas Comfort, and Neil Callanan:*
As fears about US commercial real estate roiled German banks this month, their message was clear: don’t worry, the vast majority of our property exposure is domestic.
That may not prove the comfort it seems.
While the country has so far avoided the rapid market corrections that rattled the US, experts argue that reflects arcane accounting practices shielding its lenders and investors from taking immediate hits. Relatively modest adjustments and benign provisions obscure the fact that German lenders are more exposed to commercial real estate than most of their European peers and, according to one study, extended loans more [aggressively](https://www.bayes.city.ac.uk/news-and-events/news/2023/march/new-bayes-european-lending-report-finds-that-borrowers-are-paying-up-to-6-all-in-interest-for-loans-on-prime-european-properties).
The result is a slow-motion property crash that threatens to accelerate as property owners such as Rene Benko’s Signa group of companies or landlord Adler Group are forced to sell, burdening smaller and mid-sized lenders that were just hitting their stride after bail-outs in the financial crisis. Some senior officials at the [European Central Bank](https://www.bloomberg.com/quote/2539Z:GR) say the country will inevitably be a special focus as they examine CRE risks at banks across the region.
quick we need taxpayer money to save the banks !!!
Well i certainly hope for a deep correction of house prices. They’re currently unaffordable